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ABPMP BPM CBOK Version 4.0 © 2019 ABPMP All Rights Reserved Guide to the Business Process Management Common Body of K
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ABPMP BPM CBOK Version 4.0
© 2019 ABPMP All Rights Reserved
Guide to the Business Process Management Common Body of Knowledge
ABPMP BPM CBOK
ABPMP BPM CBOK Version 4.0
© 2019 ABPMP All Rights Reserved
2
Copyright Copyright © by ABPMP 2009 – 2019. All rights reserved. This reference book is the copyrighted property of the Association of Business Process Management Professionals. All material is protected by copyright and permission should be obtained in writing prior to any reproduction, storage in a retrieval system, or transmission in any form by any means. Requests should be made by contacting the ABPMP through the website. www.abpmp.org ISBN-13: 9781704809342
Trademarks The following are registered trademarks of the Association of Business Process Management Professionals. BPM CBOK® Business Process Management Common Body of Knowledge® BPM Competency Model® CBPA® CBPL® CBPP® Capability Maturity Model® is a registered trademark of the Carnegie Mellon University’s Software Engineering Institute. Excel®, PowerPoint®, Word®, and Visio® are registered trademarks of Microsoft Corporation. PMBOK® is a registered trademark of the Project Management Institute, Inc. SCOR® and DCOR® are registered trademarks of the ASCM (Association of Supply Chain Management) ascm.org. Tallyfy® is a registered trademark of Tallyfy, Inc. All other marks and protected product names are trademarks or registered trademarks of their respective holders.
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Table of Contents 1
The BPM Professional: Career Path Architecture 1.1
2
3
Knowledge Areas of the BPM CBOK
25 28
1.1.1
Overview of BPM CBOK Knowledge Areas
29
1.1.2
Business Process Management
29
1.1.3
Process Modeling
29
1.1.4
Process Analysis
29
1.1.5
Process Design
29
1.1.6
Process Performance Measurement
30
1.1.7
Business Process Transformation
30
1.1.8
Technology and Transformation
30
1.1.9
Process Management Organization and Culture
31
1.1.10
Enterprise Process Management
31
1.2
BPM Skills and Competencies (BPM Competency Model)
31
1.3
ABPMP BPM Certification Levels
32
Introduction
34
2.1
What Is a Body of Knowledge?
34
2.2
What Is the BPM CBOK Guide?
34
2.2.1
Purpose of the BPM CBOK Guide
35
2.2.2
Organization of Sections
35
2.3
Why BPM Matters
36
2.4
The BPM Professional Space
36
Business Process Management 3.1
38
What Is BPM?
38
3.1.1
Scope of BPM Initiatives
38
3.1.2
Definition
39
3.1.3
Core Principles of Business Process Management
39
3.1.4
How Organizations Should Approach Business Change
40
3.1.5
The BPM Life Cycle Framework
40
3.1.5.1
Phase 1: Alignment to Strategy and Goals
40
3.1.5.2
Phase 2: Architect Changes
41
4
3.1.5.3
Phase 3: Develop Initiatives
41
3.1.5.4
Phase 4: Implement Changes
41
3.1.5.5
Phase 5: Measure Success
41
Alignment of Knowledge Areas to BPM Life Cycle Phases 3.1.6
42
3.1.6.1
Primary Processes (20%)
42
3.1.6.2
Support Processes (70%)
42
3.1.6.3
Management Processes (10%)
43
3.1.7
Types of Activities
43
3.1.7.1
Value Adding
43
3.1.7.2
Handoff
43
3.1.7.3
Controls and Control Activities
43
BPM Is a Management Discipline
44
3.1.8 3.1.8.1
Process Owner
45
3.1.8.2
Process Leader
48
3.1.8.3
Process Steward
49
3.1.8.4
Process Analyst
50
3.1.8.5
Process Governor
50
3.1.9
BPM Links Strategy to Execution
51
3.1.9.1
Segmenting Business Processes for Strategy Execution
54
3.1.9.2
Strategy-Driven Design and Implementation
57
3.1.9.3
BPM-Discipline to Sustain Strategic Value
61
3.1.9.4
Executive Commitment
63
3.1.10
Drivers of Business Change
64
3.1.11
Internal
64
3.1.11.1
Strategy Maps
65
3.1.11.2
Porter’s Value Chain Analysis
65
3.1.12
4
Types of Processes
41
External
67
3.1.12.1
Porter’s Five Forces
67
3.1.12.2
SWOT
72
Business Process Modeling
75
4.1.1
75
Use of Process Models
5
4.1.2
Process Model Contents
76
4.1.3
Identifying a Process Model
76
4.2
4.1.3.1
Static Versus Dynamic Models
77
4.1.3.2
Dynamic Models
77
4.1.3.3
Dynamic Modeling Tools
77
4.1.3.4
Combining Static and Dynamic Models
77
Process Repository Components and Tools
77
4.2.1
Capturing Process Components
77
4.2.2
What Is a Repository?
77
4.2.2.1
Why Do Organizations Need a Process Repository?
78
4.2.2.2
Key Elements of Good Repository:
79
4.2.2.3
Identify the Usage
80
4.2.2.4
Scope the Content
80
4.2.3
Defining a Standard Format
81
4.2.3.1
Select the Repository Management Tools
81
4.2.3.2
Finalize the Process Repository Governance
81
4.2.4
Identifying Outcome-Based Usage Scenarios
82
4.2.5
Scoping the Right Process Knowledge Content
83
4.2.5.1
How to Structure Content
84
4.2.5.2
Using Reference Models
85
4.2.6 4.2.6.1 4.2.7
Defining Process Knowledge Architecture
85
Commonly-Used Architecture Elements
86
Selecting the Right Repository and Modelling Tool
88
4.2.7.1
Types of Repository Tools
89
4.2.7.2
How to Select the Right Tool for Your Organization
90
4.2.8
Repository Governance
90
4.2.8.1
Process Governance
90
4.2.8.2
Business Architecture Related Methods and Conventions
91
4.2.8.3
Process Governance and Repository Governance
91
4.2.9
Monitoring Repository Usage and Expansion
93
4.2.10
Repository Best Practices
93
4.2.11
Repository Metrics
94
6
4.3
Process Modeling Tool Capabilities
94
4.4
Purpose of Process Modeling
94
4.4.1 4.5
Process Modeling Is a Means to Business Ends
Commonly Used Process Modeling Notations 4.5.1.1
95 96
Guidelines for Selecting a Modeling Notation
97
4.5.2
Business Process Model and Notation (BPMN) 2.0
97
4.5.3
Swim Lanes
99
4.5.4
Flowcharting
100
4.5.5
Event-Driven Process Chain (EPC)
101
4.5.6
Unified Modeling Language (UML)
103
4.5.7
IDEF0
104
4.5.8
Value Stream Mapping
106
4.5.9
Specialized Approaches in Process Modeling
107
4.5.10
Value Chain
107
4.5.11
SIPOC
108
4.5.12
System Dynamics
109
4.6
Process Model Levels
111
4.6.1
Assigning Process Information
111
4.6.2
Aligning Process Information
111
4.6.2.1
Levels Vary in Number and Name
111
4.6.3
Best Practice: Business Modeling Standards
112
4.6.4
An Example Set of Model Levels
113
4.6.4.1
Integrating Process Models
113
4.6.4.2
Process Repository Maintains Alignment
113
4.6.4.3
Enterprise Process Models
113
4.7
Business Architecture Alignment and Capability Map Development
4.7.1
117
Business Process Models
119
4.7.1.1
Business Perspective
119
4.7.1.2
What Business Process Models Include
119
4.7.2
Workflow Models
120
4.7.2.1
Operations Perspective
120
4.7.2.2
What Workflow Models Include
120
7
4.7.2.3
Rolling Up Activities
120
4.7.2.4
Details Below the Workflow Model
120
4.7.3 4.7.3.1 4.7.4 4.7.4.1 4.8
120
What the Task Steps Level Includes Worker Perspective
120 121
Task Steps and Work Performed
121
Capturing Process Information and Modeling Participants
122
4.8.1
Direct Observation
122
4.8.2
Interviews
122
4.8.3
Survey or Written Feedback
122
4.8.4
Structured Workshops
123
4.8.5
Web-Based Conferencing
123
4.8.6
Process Mining
123
4.8.7
Modeling Participants
124
4.9
Frameworks and Reference Models
4.9.1
4.10
Modeling Within a Framework
125
Complex Modeling Frameworks
125
4.9.1.2
Framework Management and Compliance
125
Using a Reference Model
125
Modeling Techniques and Tools
4.10.1 4.11
124
4.9.1.1
4.9.2
127
Drawing Tools and Reports
127
Process Validation and Simulation
127
4.11.1
Process Simulation Uses
127
4.11.2
Simulation Tools and Environments
127
4.11.3
Technical Simulation and Load Analysis
128
4.12 5
Task Steps
Business Process Modeling Key Concepts
128
Process Analysis 5.1
130
What Is Process Analysis?
130
5.1.1
Why Do Process Analysis?
131
5.1.2
When to Perform Analysis
132
5.1.2.1
Continuous Monitoring
132
5.1.2.2
Event-Triggered Analysis
132
8
5.1.3
Process Analysis Roles
133
5.1.3.1
Optimal Team Attributes
134
5.1.3.2
Analysis Roles and Responsibilities
134
5.1.4
Preparing to Analyze a Process
135
5.1.5
Prioritize the Process
135
5.1.6
Scope the Depth of the Analysis
136
5.1.7
Using Process Frameworks for Analysis
137
5.1.8
Performing the Analysis
137
5.1.8.1
Business Context
137
5.1.8.2
Organizational Culture Context
138
5.1.8.3
Performance Measurement
139
5.1.8.4
Variation
142
5.1.8.5
Cost
142
5.1.8.6
Human Involvement
142
5.1.8.7
Process Controls
143
5.1.8.8
Other Factors
144
5.1.9
Gathering Information
144
5.1.9.1
Interviewing
144
5.1.9.2
Observing
144
5.1.9.3
Researching
145
5.1.10
Analyzing the Business Environment
145
5.1.10.1
SWOT
145
5.1.10.2
Benchmarking
145
5.1.10.3
Critical Success Factors
146
5.1.10.4
Porter’s Value Chain Analysis
147
5.1.11
Analyzing Information Systems
147
5.1.11.1
Data Flow Analysis
147
5.1.11.2
Business Rules
148
5.1.11.3
Systems Documentation and Suitability for Use
148
5.1.11.4
Process Mining
148
5.1.12
Analyzing the Process
5.1.12.1
148
Cost Analysis
149
9
5.1.12.2
Root Cause Analysis
149
5.1.12.3
Cycle Time Analysis
150
5.1.12.4
Sensitivity Analysis
150
5.1.12.5
Risk Analysis
151
5.1.13
6
Analyzing Human Interactions
151
5.1.13.1
Direct Observation
151
5.1.13.2
Apprentice Learning
151
5.1.13.3
Activity Simulation
152
5.1.13.4
Workplace Layout Analysis
152
5.1.13.5
Resource Allocation Analysis
152
5.1.13.6
Motivation and Reward Analysis
153
5.1.14
Document the Analysis
153
5.1.15
Assess Business Process Maturity
154
5.1.16
Process Analysis Considerations
155
5.1.16.1
Executive Leadership
155
5.1.16.2
Organizational Process Management Maturity
155
5.1.16.3
Avoid Designing Solutions During Analysis
156
5.1.16.4
Paralysis from Analysis
157
5.1.16.5
Proper Time and Resource Allocation
157
5.1.16.6
Customer Focus
157
5.1.16.7
Understanding Organizational Culture
158
5.1.17
Conclusion
158
5.1.18
Process Analysis Key Concepts
160
Process Design 6.1
161
What Is Process Design?
161
6.1.1
The Value of Process Design
161
6.1.2
Process Design Roles
163
6.1.3
Preparing for Process Design
164
6.1.3.1 6.1.4
Key Activities and a Roadmap for Design Designing the New Process
165 165
6.1.4.1
Defining Activities in a New Process
166
6.1.4.2
Comparison to Existing Process
166
10
6.1.4.3
Creating a Physical Design
166
6.1.4.4
IT Infrastructure Analysis and Design
167
6.1.4.5
Creating an Implementation Plan
167
6.1.4.6
Model Simulation and Testing
168
6.1.5
Process Design Principles
169
6.1.5.1
Design from the Outside-In Starting with Customer Interactions
169
6.1.5.2
Design Around Value-Adding Activities
169
6.1.5.3
Minimize Handoffs
170
6.1.5.4
Have Work Performed Where it Makes the Most Sense
170
6.1.5.5
Provide a Single Point of Contact
171
6.1.5.6
Create a Separate Process for Each Cluster
171
6.1.5.7
Ensure a Continuous Flow
171
6.1.5.8
Reduce Batch Size
171
6.1.5.9
Bring Downstream Information Needs Upstream
172
6.1.5.10
Capture Information Once at the Source and Share It
172
6.1.5.11
Involve as Few Actors as Possible
172
6.1.5.12
Redesign, then Automate
173
6.1.5.13
Ensure Quality at the Beginning
173
6.1.5.14
Standardize Processes
173
6.1.5.15
Use Co-located or Networked Teams for Complex Issues
173
6.1.5.16
Consider Outsourcing Business Processes
173
6.1.6
Process Architecture Model Levels
174
6.1.7
Process Rules
177
6.1.8
Simulation of Future State
177
6.1.9
Process Compliance
178
6.1.10
Process Design Success Factors
178
6.1.10.1
Executive Leadership
179
6.1.10.2
Process Ownership
179
6.1.10.3
Incentive and Rewards
179
6.1.10.4
Cross-Functional Teams
179
6.1.10.5
Continuous Improvement
180
6.1.10.6
Commitment to Investment
180
11
6.1.10.7
7
180
6.1.11
Conclusions
180
6.1.12
Process Design Key Concepts
181
Process Performance Measurement
182
7.1.1
Key Process Measurement Definitions
182
Example: Order-to-Cash Metrics
184
7.1.1.1 7.2
Key Process Performance Definitions
185
7.3
Alignment of Business Process and Enterprise Performance
187
7.3.1
8
Alignment with Strategy
What to Measure
189
7.3.1.1
Measurement Methods
190
7.3.1.2
The Voice of the Process
193
7.3.2
Decision Support for Process Owners and Managers
197
7.3.3
Balanced Scorecard
197
7.3.4
Process Performance Measurement Key Concepts
200
Technology and Transformation 8.1
201
Business and Digital Transformation
201
8.1.1
Business Driven Change versus Technology Enabled Change
202
8.1.2
Emergence of Chief Digital Officer Role
203
8.2
Technology as an Enabler
204
8.3
Business Capability Development
205
8.3.1
Enterprise and Business Architecture Management
205
8.3.2
Levels of Models
209
8.3.2.1
Enterprise Models
209
8.3.2.2
Business Models
210
8.3.2.3
Operations and Workflow Models
210
8.3.2.4
Systems Models
210
8.3.2.5
Measurement and Control Models
211
8.3.3
Business Architecture Approach and Tools
211
8.3.3.1
The Impact Grid for Enterprise Business Architecture
212
8.3.3.2
The Business Model Canvas
213
8.3.3.3
Porter’s Competitive Strategy Matrix
216
8.3.3.4
The Coherence Premium
217
12
8.4
Enterprise Technologies
225
8.4.1
ERP
226
8.4.2
CRM
227
8.4.3
SCM
228
8.4.4
BPM Technology
229
8.5
Intelligent Business Process Management Suites (iBPMS)
234
8.5.1
iBPM Capabilities
234
8.5.2
Advanced Analytics (Big Data)
235
8.5.3
Dynamic Case Management
236
8.5.4
Process Mining
241
8.5.5
Rules Engines and Business Rule Management Systems (BRMS)
244
8.5.5.1 8.5.6 8.6
Rules Repositories and Engines
246
BPMS Vendors
248
Newer Technology Platforms
8.6.1
249
Robotic Process Automation (RPA)
249
8.6.1.1
What RPA Solves
250
8.6.1.2
RPA Technology Landscape
252
8.6.1.3
Automation versus RPA
255
8.6.1.4
Process Selection Criteria for RPA
256
8.6.1.5
RPA Value Proposition
256
8.6.1.6
RPA Tool Selection
257
8.6.1.7
Implementation of RPA
257
8.6.1.8
General Uses of RPA
258
8.6.1.9
Industry-Specific Uses of RPA
258
8.6.1.10
Five Reasons RPA Deployments Fail
259
8.6.1.11
Best Practices for RPA
259
8.6.1.12
Digital Procurement Research Using RPA
260
8.6.2 8.6.2.1
Blockchain
262
Blockchain in the Supply Chain
274
8.6.3
Artificial Intelligence (AI) and Machine Learning
275
8.6.4
Business Intelligence versus Artificial Intelligence
278
8.6.5
AI, Machine Learning, and Deep Learning
280
13
8.6.5.1
Types of Machine Learning
281
8.6.5.2
Common Machine Learning Algorithms
283
8.6.5.3
Deep Learning Models
285
8.6.5.4
Supply Chain Example with Eight Criteria for Achieving Success with AI
288
8.6.6 8.6.6.1 8.6.7
290
Microservices
291
Internet of Things (IoT)
293
8.6.7.1
Three Categories of Things
293
8.6.7.2
Six Categories of Connected Things
294
8.6.7.3
Challenges of Connected Things
295
8.6.7.4
IoT Architecture
295
8.6.7.5
IoT and The Supply Chain
298
8.6.8 9
Convergence of BPM and AI
Technology and Transformation Key Concepts
Building a Process-Oriented Organization and Culture
299 302
9.1
Leadership Development
303
9.2
Culture Change
304
9.3
Three Levels of Organizational Change and Engagement
305
9.4
The Process-Driven Organization
306
9.4.1 9.5
Enterprise Performance Matrix
307
Organizational Change
9.5.1
308
Organizational Design
309
9.5.1.1
Designing the New Organization
311
9.5.1.2
Implementing the Design
312
9.5.2
Project Management
312
9.5.3
Change Management
313
9.5.4
Financial Management
318
9.5.5
Risk Management
318
9.5.6
Process Culture
319
9.5.7
Moving from Hierarchical Structures to the Process-Driven Organization
320
9.5.8
How ERP and ERP Systems Facilitated Change in Organizational Structures
320
9.5.9
Process Management Roles
321
9.5.9.1
Process Owner
321
14
9.5.9.2
Process Manager
323
9.5.9.3
Process Analyst
323
9.5.9.4
Process Designer
323
9.5.9.5
Process Architects
323
9.5.9.6
Other Key Roles
324
9.5.10
Governing Bodies
325
9.5.11
Process Governance
326
9.5.12
BPM Center of Excellence
327
9.5.12.1
BPM CoE Activities
328
9.5.12.2
Centralized or Decentralized BPM CoE?
328
9.5.12.3
Establishing a CoE
329
9.5.12.4
Benefits of a BPM CoE
330
9.5.13 10
Building a Process-Oriented Organization and Culture Key Concepts
Enterprise Process Management
331 335
10.1.1
Definition of Enterprise Process Management (EPM)
337
10.1.2
Benefits of EPM
337
10.1.3
Requirements of EPM
340
10.1.4
Customer-Centric Measurement Framework
341
10.1.5
Process Portfolio Management
341
10.1.6
Enterprise Process Improvement and Management Planning
341
10.1.7
Process Repository Management
343
10.1.8
BPM Process Maturity
343
10.1.9
Revisiting the Balanced Scorecard
345
10.1.10
EPM Best Practices
345
10.1.11
Transformation Is a Journey, Not a Destination
347
10.1.12
Enterprise Process Management Key Concepts
349
11
Appendices
350
11.1
Appendix A: ABPMP BPM Competency Model
351
11.2
Appendix B: ABPMP BPM Core Curriculum
361
11.3
Appendix C: ABPMP Code of Ethics
383
11.4
Appendix D: ABPMP Standards of Conduct
384
11.5
Appendix E: Chapter References
385
15
11.6
Appendix F: Glossary
396
11.7
Appendix G: Contributors
415
16
Forward About ABPMP Charter The Association of Business Process Management Professionals is a non-profit, vendor-neutral professional organization dedicated to the advancement of Business Process Management concepts and practices. ABPMP is practitioner oriented and practitioner led. ABPMP has local chapters in several US areas, and many more are forming in the US and internationally. Individuals wishing to participate who are not located near an existing local chapter are urged to investigate the feasibility of starting a chapter in their locality. When not affiliated with a local operating chapter, members will be part of the Members-At-Large chapter, which has its own elected officers and participates in ABPMP activities as any other chapter would. ABPMP is governed by an elected Board of Directors. Each chapter president is an ex-officio, voting member of the International Board of Directors. ABPMP also has a Board of Advisors made up of some of the most well-known authors, practitioners, and thought leaders in the field. These advisors are volunteers who periodically offer advice to the chapters and Board of Directors concerning the industry and how ABPMP can best serve its members. ABPMP is affiliated with other professional organizations, including the European Association of Business Process Management (EABPM), which administers the ABPMP certification process and translates the BPM CBOK Guide into the French and German languages. Additional affiliations are described in the Reference Disciplines appendix. For more information on ABPMP, please see our website at www.abpmp.org. For more details about EABPM see the website at www.eabpm.org.
Vision The vision of the ABPMP is to: ● Lead the development of BPM as a mainstream discipline ● Be the professional society for Business Process Management Professionals ● Be the recognized authority for certifying BPM practitioners ● Recognize, acknowledge, and honor those who make outstanding contributions to the Business Process Management discipline ● Be the global center for the community of practice in Business Process Management
Mission The mission of ABPMP is: ● To engage in activities that advance the practice of Business Process Management ● To promote and evolve a common body of knowledge for BPM
17
● ●
To foster the development and advancement and skills and competencies of the professionals who work in the BPM discipline To validate the professional qualification and certify BPM practitioners
President’s Note: Why ABPMP Developed the BPM CBOK Guide There are many people involved in Business Process Management who consider themselves IT people, and then there are others who consider themselves business people, while there are people like me who cross both disciplines. ABPMP International considers Business Process Management (BPM) to be both a management discipline and a set of technologies that support managing by process. Unfortunately, that seems to be the only industry consensus on the definition of BPM, as there is certainly no shortage of opinion about what BPM is and how to do BPM. According to the ABPMP International's Guide to The Business Process Management Common Body of Knowledge (BPM CBOK Guide): Business Process Management (BPM) is a disciplined approach to identify, design, execute, document, measure, monitor, and control both automated and non-automated business processes to achieve consistent, targeted results aligned with an organization’s strategic goals. BPM involves the deliberate, collaborative, and increasingly technology-aided definition, improvement, innovation, and management of end-to-end business processes that drive business results, create value, and enable an organization to meet its business objectives with more agility. BPM enables an enterprise to align its business processes to its business strategy, leading to effective overall company performance through improvements of specific work activities either within a specific department, across the enterprise, or between organizations. Within the ABPMP International, our membership shows a diversity of titles that reflect these divergent approaches to process management. We have well over 150 different titles represented in our database, although there are clusters around some of the titles like Manager, Director, VP, Analyst, Consultant, and Architect usually preceded or followed by Process, BPM, Process Improvement, Process Innovation, and so on. There is a need in the marketplace to truly set the standard for Business Process Management and the emerging business process professional. Business Process Management is a broad discipline that requires one to understand the necessary skills and competencies that one must develop in order to develop the appropriate skills and effectiveness within the profession. The ABPMP BPM Competency Model is a developmental path that outlines the skills, competencies, and experience levels for individuals pursuing a career in Business Process Management. There is certainly no shortage of vendors with BPM training out there, but none have fully defined the full spectrum of Business Process Management knowledge. For BPM Professionals to be a force in the marketplace, it's critical to establish the essential knowledge areas for BPM Professionals, much like the Project Management Institute did for project management professionals and APICS (now the
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Association for Operations Management) did for operations professionals. It became clear that there was a similar need to develop some baseline standards, minimum qualifications, and some reasonable path for becoming a professional in BPM. That is why ABPMP International decided to put a stake in the ground and developed the Guide to The Business Process Management Common Body of Knowledge (BPM CBOK Guide), the Certified Business Process Associate (CBPA), the Certified Business Process Professional (CBPP), and the soon to be developed Certified Business Process Leader (CBPL). The BPM CBOK Guide is ABPMP International's baseline set of standards for the what of BPM — the knowledge, skills, and competencies, coupled with a strategic approach (how) by illustrating a BPM Life Cycle Framework for those embarking on a journey to true Business Process Management. The what and how of BPM will continue to evolve, as will the content (what) and training (how) for it. ABPMP International's CBPP is a certification that has been developed by and for BPM practitioners. It was the first independent, professional examination and certification program in the area of BPM followed by the CBPA, and a soon to be CBPL, all of which have been designed to comply with international certification standards with the goal of becoming the internationally recognized standard for BPM Professionals. This fourth version of the ABPMP CBOK is a response to a growing demand for information on what the career path is for BPM professionals, inclusive of how BPM continues to evolve, along with the technologies that BPM can employ to transform organizations to compete in a global economy. As an association, ABPMP has adopted a position that there are three very different perspectives on creating a proficient BPM Professional: knowledge, skills, and competencies integrated into an overall career path with associated BPM certifications for each level, from entry level to senior levels within organizations. The first level addresses the foundational concepts, which are based on the knowledge areas contained in the BPM CBOK Guide, that include current practices supported with some instruction. The second level is related to the additional competencies that are important components for an evolving career in BPM. We have added the BPM Competency Model and a soon to be third BPM Certification, Certified Business Process Leader (CBPL), to address the competency and career components. The BPM CBOK and our professional BPM Certifications are focused on practitioner-level knowledge and experience. We believe that the broad and deep practitioner experience is at the core of BPM, and that it is essential to add to the human change factor necessary for continued success in business process change in organizations. — Tony Benedict, CPIM, CBPP, CBPL
About the BPM CBOK Guide The original project to develop the ABPMP CBOK began in late 2003. The first step was to develop a consensus on what the core knowledge areas are for BPM, taking into consideration all of the current published materials, inputs from leading practitioners and academics, and the available BPM
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technologies at that time. Version 1.0 took about six years to develop a consensus on the content. ABPMP put out Version 1.0 for feedback, and at that time developed an affiliation with EABPM (European Association of BPM). It took another year to incorporate all the ABPMP and EABPM feedback, edit it, and to finally publish globally, Version 2.0 in 2009. This version was used to develop the Certified Business Process Professional (CBPP) certification, both of which were launched globally in English. It wasn’t until the end of 2013, that ABPMP published Version 3.0, which was a two-year effort to update the BPM CBOK Guide to reflect current practices and the maturity and adoption of BPMS technologies. The point of view of Version 3.0 was from a business transformation perspective using the available BPMS technologies. The CBPA exam was then developed as an entry-level BPM Certification and our CBPP exam was updated to reflect the content additions to Version 3.0. The approach to Version 4.0 includes all the comments that had been collected from people who were using Version 3.0 of the BPM CBOK, augmented by comments and suggestions from association members in Europe and Brazil. In late 2017, the decision was made to update the BPM CBOK Guide again since BPM, BPMS, and Enterprise technologies have changed, especially with the introduction of Agile methodologies, low-code and nocode technologies such as robotic process automation (RPA), and newer platforms like blockchain, artificial intelligence, machine learning and Internet of things (IoT). ABPMP has also acknowledged the feedback from our practitioners to add more content on using a process repository, collaboration techniques, and also to emphasize more explicitly that an effective BPM approach must link strategy to execution to deliver value to organizations. Lastly, the project to update the BPM CBOK Guide to Version 4.0 required ABPMP to align the new BPM CBOK content and knowledge area to the newly developed BPM Competency Model. The table of contents of the BPM CBOK Guide, Version 4.0 reflects this alignment.
Principles of BPM CBOK Guide Development In creating all the versions of the BPM CBOK Guide, the ABPMP Board asked all participants that the following principles be used to guide the authors and reviewers: BPM CBOK Guide Should (Be) ● ● ● ● ● ● ● ● ● ● ●
BPM CBOK Guide Should Not (Be)
Use a standardized terminology Ease the communication about BPM Support a common understanding of BPM Reference related disciplines Contain commonly accepted practices Practitioner driven Vendor neutral Guide (non-prescriptive) Not a standard setting body Facilitate evaluation of solutions Consistent
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● ● ● ● ● ● ● ●
Sell anything (not vendor driven) Redefine other disciplines Too detailed Miss the audience (practitioner) Incomplete in width How to (recipe) Hard to read Have an opinion
Preface The following was written by Brett Champlin, past President of the Association of Business Process Management Professionals (ABPMP).
Defining a BPM Professional BPM is both a management discipline and a set of technologies that support managing by process. A convergence of technologies for workflow, enterprise application integration (EAI), document and content management, business rules management, performance management, and analytics, among others, have been brought to bear with a focus on supporting process-based management. A few years ago, BPM software vendors were focused on the execution layer of the technology stack. Today they are delivering BPM suites with a full range of features and functions including artificial intelligence to support process managers and analysts as well as technology developers. With the advent of low-code and no-code technology, the ease of use will gradually migrate away from IT departments into the business units. However, given the magnitude of data now collected from processes, new roles are emerging to support analytical insights garnered from artificial intelligence capabilities, such as data analysts, data scientists, to name a few. Recent research studies confirm that Business Process Management (BPM) is rapidly evolving as the dominant management paradigm of the twenty-first century. BPM is now generally adopted in companies with more than 80% of the world’s leading organizations actively engaged in BPM programs, many of these on a global scale. There is now enough published information that demonstrates that proven strategies, approaches, tools and techniques (including business process frameworks and maturity models) are employed by world-class, process-focused enterprises. Business Process Management and Performance Management are merging as more and more process management groups begin to recognize the organization as a system of interacting processes whose performance must be balanced, and that must be the focus of fulfilling strategies. Conversely, more and more of those engaged in enterprise performance management are realizing that it is the performance of the business processes, not the organizational functional units or a set of assets, that has to be their central focus in order to gain the true benefits of a performance management initiative. Sophisticated and powerful new technologies are central to successful and sustainable programs for both of these disciplines, and integrating the information delivery capabilities as well as management methods is critical to moving up the scale of maturity in deploying these practices. Along with Business Process Management, new organizational structures and roles are emerging, and a new genre of professionals is emerging to support these practices. Yet, business schools are just beginning to develop programs to teach us how to manage by process. One thing that is clear is that managing by process and adapting new information systems tools to support those activities is a successful strategy that brings tremendous advantage to those businesses that adopt it. And, it seems that the more broad-based the process management initiative is in the organization, the more effective it is and the more value it adds.
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There seem to be as many companies whose BPM efforts are driven by their IT organizations as there are those whose BPM programs are being led by core business areas. Likewise, there seem to be two major approaches: those that are more project-oriented versus those that view BPM as a continuous process improvement and transformation effort. These different models generate roles and responsibilities with widely varying titles and alignments of responsibilities, yet all are processmanagement focused. Within the ABPMP, the membership still shows a diversity of titles that reflect these divergent approaches to process management. There are well over 150 different titles represented in the ABPMP database, although there are clusters around some of the titles like Manager, Director, VP, Analyst, Consultant, and Architect, usually preceded or followed by Process, BPM, Process Improvement, Process Innovation, and the like. One role that is particularly significant in BPM programs is that of the process owner. Depending on whether the organization restructures around cross-functional business processes, creates a matrixmanaged organization, appoints functional managers to take on a dual role, or relies on a crossfunctional council of managers to oversee core business processes, it will ensure that someone takes on the responsibilities of a process owner for each of the organization’s key operational processes. This role seems to be one of the critical success factors in effective process-oriented organizations. An organizational factor that seems to reflect the evolution or maturity in organizations implementing BPM is the existence of a specialized group that is recognized as the process specialists. Many begin with a BPM Center of Excellence (CoE) or similar group that provides to the organization process modeling, analysis, design, and project expertise along with standard tools, methods, and techniques and acts as an internal consulting group. A more mature or experienced process-oriented organization will have a process management governance group or Process Management Office that oversees the organization’s portfolio of processes and aligns, prioritizes, and authorizes transformation efforts. Some companies may have both types of groups working together. These groups are staffed with process management professionals with a wide range of titles and alignment of responsibilities. While there seem to be many successful models for implementing BPM in organizations, one thing they all have in common is the many new roles with new sets of skills and responsibilities all centered on BPM. This is an emerging group of professionals whose work is essential to twenty-first-century business: the business process professional. Judging from the members of ABPMP, they are generally highly educated (67% have a bachelor or advanced degree) and have a significant amount of experience (9.9 years average) working in process improvement and redesign. Some of the more common titles are: ● ● ● ● ●
Business Process Analyst Business Process Engineer Business Process Architect Business Architect Business Process Manager
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● ● ● ● ● ● ● ● ●
Business Process Consultant Business Process Manager Business Process Owner Business Analyst Business Systems Analyst Manager or Director of Business Performance Improvement Manager or Director of Business Process Innovation Process Owner Process Officer
These titles and their variants cover the majority of the new roles and responsibilities in processmanaged organizations. Regardless of the roles or organizational structure, they generally are responsible for the same sets of activities: process modeling, process analysis, process design, process change and transformation, process implementation, process monitoring and control, and process performance improvement. Some of these roles may be staffed in IT organizations and some in business disciplines. Many organizations are staffing with cross-discipline groups combining both IT and business knowledge or with people who have served in both IT and business units, bringing a depth of knowledge and range of skills that transcend traditional boundaries. Many have found that combining people who have general consulting-type knowledge and skills with others who have a depth of business-specific knowledge is a successful strategy for BPM efforts. There is a new professional in the business world today, the business process professional. The work they do is critical to the future of competitive organizations. And, even though there is no single or clear model that one can adopt, it doesn’t diminish the need for more skilled and motivated people to do this work. Eventually, universities will come out with well-researched and structured models based on some of the most visible success stories. In the meantime, businesses can’t wait for someone to tell them the best way to do this; they have to do this work today, and there just aren’t enough knowledgeable, skilled people to go around. Successful organizations are finding that to staff these groups, they have to invest in training and development. Some are building their own curricula and training programs and bringing entry-level people on board to work closely with the few talented BPM Professionals they do have. Others are sending managers, project leaders, and systems analysts to training, such as the BPMInstitute or Object Management Group (OMG) certificate programs, to begin to build the requisite knowledge and skills. This situation will likely continue to be the most viable approach to building process organizations for the near future. The mission of ABPMP and EABPM is to engage in activities that promote the practice of Business Process Management, to develop a common body of knowledge in this field, and to contribute to the advancement and skill development of professionals who work in this discipline by acting as a certifying body for BPM Certifications. ABPMP and EABPM’s local chapters produce periodic events featuring BPM boot camps, case studies, and BPM Certification preparation, and presentations about BPM topics, which provides an inexpensive continuing education program for their members. ABPMP and EABPM have an education committee that continues developing the BPM Common Body of Knowledge. Following that, ABPMP has produced a recommended curriculum for academic and training programs.
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ABPMP has created a set of criteria to evaluate training providers and their programs and a process for formal endorsement of training providers and academic programs. Working in BPM at this time is the most exciting and valuable business experience managers and professionals can get today. I see Business Process Management professionals as the new training background for future business leaders today, much as project management was fifteen years ago. ABPMP has developed through the BPM CBOK Guide and BPM Competency Model the baseline knowledge, skills, standards, competencies, and minimum qualifications for each BPM Certification level as a career path for becoming a professional in this BPM. If you are working in process management, join others in developing the profession — join ABPMP today. Together we can build a new professional discipline that will create the future. — Brett Champlin, Pat President, ABPMP
The BPM CBOK Guide Approach by Version The general approach, which is consistent among all versions, is to convey knowledge, skills, and competencies that lead to a BPM Certification. The differences between versions are in the certification type, levels, and potential roles, as shown in the following table.
Versio n
Conveys
Towards BPM Certification
Level
Role
2.0
Knowledge, skills, competencies
CBPP
Intermediate
Process Architect
3.0*
Knowledge, skills, competencies
CBPA
Entry
Process Analyst
Knowledge, skills, competencies
- CBPP
- Entry
- Process Analyst
4.0
- CBPA
- Intermediate
Future
Knowledge, skills, competencies
- Process Architect - Chief Process Architect
CBPL
Leadership
- Enterprise Business Architect
NOTE: The leadership BPM CBOK will be a separate body of knowledge with a didactic exam. *CBPA level was introduced in version 3.0 and includes updates to CBPP level.
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1 The BPM Professional: Career Path Architecture For those BPM practitioners who are in it for the long run, ABPMP developed the BPM Competency Model and Career Path Architecture as a roadmap for professional development in the BPM profession. The goal was to make sure that if a person was either a business-oriented or IT-oriented BPM professional, that there was a career path for you to elevate your skills and competencies, and your job title and pay grade. The pyramid graphic that follows is representative of how any professional evolves through a career path (known as climbing the ladder). People start their careers at an entry level. They learn the skills and competencies to do the work at the base technician level. Over time, they acquire managerial skills and competencies and become managers who supervise people (technicians) working on larger projects or initiatives. Finally, they acquire the skills and competencies to manage a business unit or organization and graduate to the level of senior leader — a manager of managers.
Figure 1.1 Leadership Development Pipeline Pyramid The larger question is, what are the possibilities of that career evolution within an organization? Following is an example of some of the currently developing job titles in today’s marketplace and possible paths to more senior levels. The right side of the diagram shows the growing scope of design responsibilities and accountabilities as your skills, competencies, and experience mature.
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Figure 1.2 Example of Changing Paths in Job Advancement Again, the idea here is that as you develop more skills and competencies, you will naturally climb the ladder of an organization. As you acquire more skills and competencies in BPM and design, you also pick up more managerial skills and competencies as a leader (people manager). ABPMP has created a career architecture for BPM Professionals to address an unaddressed market need for the BPM profession. If you graduate from college and get your first entry-level position, there is an early need to understand process and human performance. The CBPA is that first step. The CBPP can be attained after four years of experience. Finally, after ten years of experience, you can go for the CBPL certification. Each certification carries with it certain level skills, competencies, and the experience necessary to grow and pursue a career path.
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Figure 1.3 The BPM Competency Model The BPM CBOK Guide contains the knowledge areas, skills, and competencies to start one’s BPM journey.
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1.1 Knowledge Areas of the BPM CBOK Knowledge areas are complete sets of concepts, terms, and activities that make up a professional field. The following image represents knowledge areas for the Business Process Management profession.
Figure 1.4 BPM Knowledge Areas This BPM CBOK Guide provides a basic reference for BPM practitioners. The primary purpose of the BPM CBOK Guide is to define the profession of Business Process Management and to identify and provide an overview of the knowledge areas that are generally recognized and accepted as good practice. It includes roles and organizational structures, as well as provisions to steer a process-driven organization. The guide provides a general overview of each knowledge area and a list of common activities and tasks associated with each knowledge area. The BPM CBOK Guide is an enabler of success. It aims to increase capabilities of BPM Professionals so they can develop and guide process-driven business strategy for their organizations, supported by enabling BPM technologies, which leads to the success of the businesses. This guide is also intended as a springboard for discussions among BPM Professionals. Often, a discipline such as BPM finds different groups using language in different ways, resulting in conflicting terminology or definitions that can confuse discussions on the topic. One purpose of the BPM CBOK Guide is to encourage the use of a common, agreed-upon vocabulary for the BPM discipline. It also provides links and references to other sources of information that are part of the broader BPM Common Body of Knowledge. In addition, the BPM CBOK Guide conveys the fundamental knowledge required of a BPM Professional. Any assessment or professional certification in the field requires a demonstrated understanding of the core BPM concepts outlined in the knowledge areas, as well as the ability to perform the activities and
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tasks identified within them. The BPM CBOK Guide is the basis for developing questions for the exam that individuals must pass to become a Certified Business Process Associate (CBPA) and/or Certified Business Process Professional (CBPP). These examinations have been developed by the ABPMP as the BPM CBOK Guide is constructed and with the aid of a professional certification and licensure testing company. ABPMP follows the International Standard ANSI/ISO 17024 and ACE (American Council on Education) General Requirements for Bodies Operating Certification of Persons in the creation of the certification and examination processes.
1.1.1 Overview of BPM CBOK Knowledge Areas The following sections provide a glimpse of the coverage in subsequent chapters of the BPM knowledge areas.
1.1.2 Business Process Management The Business Process Management chapter focuses on the concepts of BPM, such as key definitions, end-to-end processes, customer value, and the nature of cross-functional work. Process types, process components, the BPM life cycle, along with critical skills and success factors are introduced and explored. This section defines BPM and provides the foundation for exploring the core knowledge areas of BPM.
1.1.3 Process Modeling Process modeling includes a critical set of skills and processes that enable people to understand, communicate, measure, and manage the primary components of business processes. The Process Modeling Core Area provides an overview of these skills, activities, and key definitions, along with an explanation of the purpose and benefits of process modeling, a discussion of the types and uses of process models, and the tools, techniques, and modeling standards. As of Version 4, the concept of a process repository is included and referenced in other chapters as appropriate.
1.1.4 Process Analysis Process analysis involves a systematic review and an in-depth examination of business processes, including the efficiency and effectiveness of business processes. This chapter explores process analysis purpose, activities to support process decomposition, and analytical frameworks. It covers the roles, scope, business context, rules, and performance metrics that make up process analysis. The focus is on understanding current-state processes with a view to achieving improvements in the future state. A variety of process analysis types, tools, and techniques are included within this knowledge area.
1.1.5 Process Design Process design involves creating the future state or design for business processes within the context of the organizational strategy and linking process performance objectives to the strategy and goals. It provides the plans and guidelines for how work processes flow, how rules are applied, simulation of the future state, process compliance, and operational controls. The value of process design is discussed
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along with planning for how business processes function and are measured, governed, and managed. This knowledge area explores process design roles, techniques, and principles of good design. The chapter also explores common process design patterns and considerations such as compliance, executive leadership, and strategic alignment.
1.1.6 Process Performance Measurement Process performance measurement is the formal, planned monitoring of process execution and the tracking of results to determine the effectiveness and efficiency of the process. This information is used to make decisions for improving or retiring existing processes and/or introducing new processes in order to meet the strategic objectives of the organization. Topics covered include the importance and benefits of performance measurement, key process performance definitions, monitoring and controlling operations, alignment of business processes and enterprise performance, what to measure, process and measurement methods and frameworks, modeling and simulation, decision support for Process Owners and managers, and considerations for success.
1.1.7 Business Process Transformation Process transformation emphasizes that the BPM life cycle, including business and/or digital transformation, begins with strategy and cascades down to execution. The chapter also addresses change management associated with these transformations. Process changes are discussed in the context of the BPM life cycle from planning to implementation. Various process improvement, redesign, and reengineering methodologies are explored, along with the tasks associated with construction, quality control, and the introduction and evaluation of new processes. The topic of organizational change management, including change management best practices for transformation are also addressed.
1.1.8 Technology and Transformation The technology and transformation knowledge area covers enterprise technologies that support organizational business transformation. Enterprise technologies, including BPM, enable business and digital transformation. BPM is a technology-enabled and technology-supported management discipline. The section includes BPM technologies available to support the planning, design, analysis, operation, and monitoring of business processes. These technologies include the set of application packages, development tools, infrastructure technologies, and data and information stores that provide support to BPM Professionals and workers in BPM-related activities. Integrated Business Process Management Suites (iBPMS), process repositories, and cloud-based platforms for modeling, analysis, design, execution, and monitoring are discussed. BPM standards, methodologies, and emerging trends are also covered. As of Version 4, robotic process automation (RPA), blockchain, artificial intelligence, machine learning, and Internet of things (IoT) are included in this chapter.
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1.1.9 Process Management Organization and Culture The process management organization knowledge area addresses the roles, responsibilities, and reporting structure to support process-driven organizations. The chapter includes a discussion of what defines a process-driven enterprise, along with cultural considerations and cross-functional, team-based performance. The importance of business process governance is explored, along with a variety of governance structures and the notion of a BPM Center of Excellence (CoE). As of Version 4, the role of collaboration in BPM is included here and referenced in other chapters.
1.1.10 Enterprise Process Management Enterprise Process Management is driven by the need to maximize the results of business processes consistent with well-defined business strategies and functional goals based on these strategies. Process portfolio management ensures that the process portfolio supports corporate or business-unit strategies and provides a method to manage and evaluate initiatives. The Enterprise Process Management knowledge area identifies tools and methods to assess process management maturity levels, along with required BPM practice areas that can improve a BPM organization state. Several business process frameworks are discussed, along with the notion of process integration — that is, interaction of various processes with each other and with models that tie performance, goals, technologies, people, and controls (both financial and operational) to business strategy and performance objectives. The topics of process architecture and best practices in Enterprise Process Management are explored. Current Version Comments Please send comments to ABPMP through our website and let us know if there are any topics you believe we should include or if you have disagreements with the association’s point of view. Your comments will be used as a foundation for future versions. Readers who would like to see additional topics or discussions in future versions are invited to send all suggestions or recommendations for changes to ABPMP at www.abpmp.org/page/feedback_CBOK.
1.2 BPM Skills and Competencies (BPM Competency Model) The ABPMP BPM Competency Model was developed to address the overall need to provide BPM Professionals a developmental path that outlines the skills, competencies, and experience levels for individuals pursuing a career in Business Process Management. The model also shows how that developmental path aligns BPM CBOK content knowledge areas with the ABPMP BPM Certifications. The BPM Competency Model graphic that follows provides a conceptual understanding of the experience level requirements as one progresses from entry level (CBPA) to leadership level (CBPL). The CBPA requires either a Bachelor’s degree or at least one year of work experience to be eligible. The CBPP level requires a minimum of four years of work experience and is intended for individuals who can demonstrate project-oriented, BPM-related improvements. The CBPL requires a minimum of ten years of experience and should include enterprise-level business process change projects with at least one major cross-functional process.
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The BPM Competency Model Matrix is illustrated in the following table as a one-page summary. The full model is thirteen pages and covers each category of skill and competency in detail for each BPM Certification level. The full version of the BPM Competency Model is available in Appendix A.
Figure 1.5 BPM Competency Model Matrix Summary
1.3 ABPMP BPM Certification Levels BPM Certification means that an individual has: ● Achieved appropriate professional experience and/or education ● Passed a rigorous examination of 130 questions ● Agreed to abide by a professional code of conduct ● Committed to maintaining an active credential through meeting continuing professional development requirements The ABPMP BPM Certification program is unique in our rapidly changing marketplace. The BPM Certifications were developed by and for BPM practitioners. They are the first independent, professional examinations and certification programs in the area of BPM. The BPM Certifications have been designed to comply with international certification standards and are now the internationally recognized standards for BPM Professionals. The BPM Certifications are offered by ABPMP through our chapters and affiliates worldwide, representing the largest qualified constituency of BPM practitioners today. There are three BPM Certifications: CBPA, CBPP, and CBPL.
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CBPA. The Certified Business Process Associate certificate is for new BPM practitioners. Those who have completed (or are in process of completing) an undergraduate degree or who have worked in a Business Process Management role for at least one year are eligible to sit for the exam. The exam demonstrates an understanding of business process improvement and transformation concepts across the disciplines covered by the BPM CBOK Guide. The CBPA certification allows those new to the profession to demonstrate their understanding of the concepts, approaches, techniques, and technologies needed to succeed in BPM and helps them stand out among their peers. The CBPA certificate is more than an academic certification or a certificate of study. It is independent verification that the individual has a solid level of basic competency in Business Process Management and may have applied the concepts in day-to-day work experience. CBPP. The Certified Business Process Professional certificate is for individuals who are experienced BPM practitioners and requires a minimum of four years of BPM work. It is a pre-requisite for pursuing the Certified Business Process Leader (CBPL) certificate. CBPL. The Certified Business Process Leader certificate is focused on practitioners in leadership and requires a minimum of ten years of experience. Those seeking this level should have experience in enterprise-level business process change that includes at least one major cross-functional process.
Figure 1.6 Certification Levels with Eligibility Requirements
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2 Introduction In this chapter, you will find definitions related to the BPM CBOK Guide, a statement of purpose, how this guide is organized, the drivers for using BPM, and an explanation of where BPM fits in the professional space.
2.1 What Is a Body of Knowledge? A body of knowledge is a collection of all the available knowledge on a topic or all the published material on a subject. This definition of corpus (also called body of knowledge) comes from businessdictionary.com. For the purposes of BPM, we adapt the definition to: A collection of all the available knowledge on the currently accepted practices of a topic, including all the published material on the subject.
2.2 What Is the BPM CBOK Guide? Guide to the Business Process Management Common Body of Knowledge (BPM CBOK Guide) is the globally recognized standard for the practice of Business Process Management. The BPM CBOK Guide describes business process management knowledge areas, key concepts, and generally accepted best practices (skills and competencies) to guide an organization on a process-led journey. When a new term is used in the market, until it is defined and becomes a best practice, it won’t be in the BPM CBOK Guide. Social BPM is one example of such terminology. Process mining is another example where the marketplace (mostly IT and BPM vendors) is using the term defined as follows: process mining is a process analysis method that aims to discover, monitor, and improve real processes (processes not assumed) by extracting knowledge easily from available event logs in the systems of current information of an organization. That definition actually describes an existing capability of many BPM systems that do process mining, which is simply a form of process discovery. For more information please refer to: https://medium.com/@pedrorobledobpm/process-mining-plays-an-essential-role-indigital-transformation-384839236bbe. Because the term Business Process Management (BPM) is used so frequently throughout this publication, we include the definition, as applied, herein:
Business Process Management (BPM) is a disciplined management approach to identify, design, execute, document, measure, monitor, and control both automated and non-automated business processes to achieve consistent, targeted results aligned with an organization’s strategic goals. BPM involves the deliberate, collaborative, and increasingly technology-aided definition, improvement, innovation, and management of end-to-end business processes that drive business results, create value for customers, and enable an organization to meet its business objectives with more agility.
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2.2.1 Purpose of the BPM CBOK Guide This BPM CBOK Guide provides a basic reference of BPM best practices for BPM practitioners. The primary purpose of the BPM CBOK Guide is to define the profession of Business Process Management and to identify and provide an overview of the knowledge areas that are generally recognized and accepted as best practice. It includes roles and organizational structures as well as provisions to steer a process-driven organization. The guide provides a general overview of each knowledge area and a list of common activities and tasks associated with each knowledge area. The BPM CBOK Guide allows BPM Professionals to increase their capabilities and thereby develop appropriate business strategies, supported by enabling BPM technologies, which leads to business success. This guide is also intended as a springboard for discussions among BPM Professionals. Often, a discipline such as BPM finds different groups using language in different ways, resulting in terminology or conflicting definitions that can confuse discussions on the topic. One purpose of the BPM CBOK Guide is to encourage the use of a common, agreed-upon vocabulary for the BPM discipline. It also provides links and references to other sources of information that are part of the broader BPM Common Body of Knowledge. In addition, the BPM CBOK Guide reflects the fundamental knowledge required of a BPM Professional. Any assessment or professional certification in the field requires a demonstrated understanding of the core BPM concepts outlined in the knowledge areas, as well as the ability to perform the activities identified within them. The BPM CBOK Guide is the basis for developing examination questions for the exam that individuals must pass to become a Certified Business Process Associate (CBPA) and/or Certified Business Process Professional (CBPP). These examinations have been developed by the ABPMP as the BPM CBOK Guide is constructed and with the aid of a professional certification and licensure testing company. ABPMP follows the International Standard ANSI/ISO 17024 and ACE (American Council on Education) General Requirements for Bodies Operating Certification of Persons in the creation of the certification and examination processes.
2.2.2 Organization of Sections The BPM CBOK Guide is organized in BPM knowledge areas or core areas or sections, as outlined in Figure 2.1. These BPM core areas are segmented into a broader, organizational-oriented perspective and a process perspective. BPM core areas reflect BPM capabilities that may be considered by an organization implementing Business Process Management. BPM concepts are covered in the Business Process Management chapter, which sets the stage for all of the BPM core areas.
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Figure 2.1 Core Areas of BPM and CBOK Organization
2.3 Why BPM Matters There are many reasons why BPM matters to businesses even when senior leaders may not be as process oriented as others. The reasons are usually developed from using strategic analysis techniques or frameworks for understanding the drivers of change. The two types of drivers are in the context of the organization and comprise a litany of drivers both internal and external to the organization.
2.4 The BPM Professional Space By professional space, we mean all the internal and external factors that influence decisions surrounding business process management. For BPM practitioners, the BPM professional space represents the scope of knowledge and can be analogous to the internal and external drivers. The BPM professional space is comprised of nine components, as shown in Figure 2.2. External Environment. In Figure 2.2, the box on the left represents the external environment, made up of the enterprise's relevant environment, BPM practice influences, and BPM professional development programs. The enterprise’s relevant environment includes competitors, industry associations, and regulators. BPM practice influencers include professional associations, rule-making institutions, and technology vendors. BPM professional development programs include common body of knowledge publications, research projects, education programs, and professional certification. The ABPMP is
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strongly committed to supporting programs that promote BPM professional practices and professional development. Enterprise (Internal) Environment. The middle box in Figure 2.2 shows the next five components, which are internal to the enterprise: business strategy and governance; BPM professional practices; business processes; applications, data, and IT platforms; and values, beliefs, leadership, and culture. Business strategy and governance refers to guidelines for management of an organization. BPM professional practices is the management of the organization's business processes (process management). Business processes are the formalized operational standards of an organization, both internal and external. Applications, data, and IT platforms are technology used to support business processes. Values, beliefs, leadership, and culture are factors unique to an organization that influence how employees and management behave. Extended Enterprise Environment. The box on the right in Figure 2.2 depicts the extended enterprise, with influences both internal and external. These are business processes that are outsourced. Although executed in an external environment, they are extensions of the enterprise’s business processes. The key point is that influences on BPM Professionals extend outside the organization and must be considered as part of a holistic view of its business processes.
Figure 2.2: BPM Professional Space
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3 Business Process Management Chapter 3 delves into business process management.
3.1 What Is BPM? The following sections answer the question, what is BPM?
3.1.1 Scope of BPM Initiatives BPM provides a means to focus on results as well as courses of action. Figure 3.1 illustrates the scope of BPM initiatives.
Figure 3.1: Scope of BPM Initiatives Initiatives can be limited in scope, such as a project that targets business process improvement (BPI). Outcomes can be achieved by applying the BPM life cycle as described in this guide or by applying other methodologies like Lean Management or Six Sigma.
Business process improvement (BPI) is a singular initiative or project to improve the alignment and performance of a particular process with the organizational strategy and customer expectations. BPI includes the selection, analysis, design, and implementation of the (improved) process. BPM is also a holistic system that can generate outcomes of initiatives or projects. This result, called Enterprise Process Management (EPM), includes the strategy, values and culture, structures and roles, and a whole set of end-to-end processes with their associated goals and indicators, IT, and people. The degree of progress reached can be assessed as a process management maturity level.
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Enterprise Process Management (EPM) is the application of BPM principles, methods, and processes to an individual enterprise. EPM (a) assures the alignment of the portfolio and architecture of end-to-end processes with the organization’s strategy and resources and (b) provides a governance model for the management and evaluation of BPM initiatives. BPM can also be seen as a continuous refinement, which can be achieved by the application of a day-today feedback control system to improve the quality of single processes and the Enterprise Process Management system.
Business process continuous improvement is the sustained approach to monitor process performance to ensure processes are more efficient and effective by applying a concurrent and responsive feedback control system. 3.1.2 Definition Business Process Management is defined below. It is also a management discipline that treats business processes as assets. It presumes that organizational objectives can be achieved through the definition, engineering, control, and dedication to continuous improvement of the organization’s major crossfunctional business processes.
Business Process Management (BPM) is a disciplined management approach to identify, design, execute, document, measure, monitor, and control both automated and non-automated business processes to achieve consistent, targeted results aligned with an organization’s strategic goals. BPM involves the deliberate, collaborative and increasingly technology-aided definition, improvement, innovation, and management of end-to-end business processes that drive business results, create value for customers, and enable an organization to meet its business objectives with more agility. 3.1.3 Core Principles of Business Process Management The following are core principles of Business Process Management that are central to the practice and should be front of mind throughout one’s BPM practice. ● Business change is a performance-driven management discipline ● Business change must involve all relevant stakeholders involved in the process ● Business process change must be approached from the outside in (customer-driven) ● Business processes must be managed holistically within any organization ● Business change must be linked to the stakeholder criteria ● Business process change must be aligned to the corporate strategy and the goals of the operational plan metrics ● The organization must segment the primary, cross-functional processes that deliver value to the customer
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Business change is about people as much as process Business Process Management is a journey, not a destination Business processes must be managed continuously in a life cycle model
3.1.4 How Organizations Should Approach Business Change Just as strategic planning should be an annual cycle in any organization, so should the approach be to business (process) change. While there are many BPM life cycles in use today, what’s more important is that BPM practitioners use a life cycle that follows the principles of Business Process Management.
3.1.5 The BPM Life Cycle Framework The management practice of BPM follows a process or life cycle of integrated BPM phased activities. Most life cycles can be summarized by an iterative, phased set of activities that include: (1) (2) (3) (4) (5)
Alignment to strategy and goals Architect changes Develop initiatives Implement changes Measure success
Continuous improvement is part of the last phase. As a BPM practitioner cascades through the BPM life cycle, as illustrated in Figure 3.2, business processes are enabled or constrained by a variety of factors including the four primary factors of values, beliefs, leadership, and culture.
Figure 3.2 Five Phases of BPM Life Cycle 3.1.5.1 Phase 1: Alignment to Strategy and Goals The BPM life cycle begins with developing a process-driven strategy and plan for the organization. This phase starts with an understanding of organizational strategies and goals that are designed to ensure a compelling value proposition for customers. The strategic plan provides structure and direction for continued customer-centric process management. It lays a foundation for a holistic BPM approach to ensure the alignment with organizational strategy and goals with the integration of strategy, people, processes, and systems across functional boundaries. This phase sets the strategy and direction for aligning process and process capability to the organization’s strategy. It also identifies and aligns processes to customer objectives. Critical to this phase is determining the process in focus for change and finally to align those process metrics to the goals of the organization. Ancillary activities include
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identifying appropriate BPM Center of Excellence (CoE) organizational roles and responsibilities, executive sponsorship, and expected resource commitments. 3.1.5.2 Phase 2: Architect Changes During phase 2, the work of process modeling, process analysis, process design, and Process Performance Measurement occurs. Phase 2 uses methodologies discussed in this BPM CBOK Guide to identify current major, cross-functional organizational processes in the context of the desired goals and objectives. Practitioners use analysis to assimilate information from strategic plans, process models, performance measurements, changes in the environment, and other factors in order to fully understand the business process priorities to be implemented in the organization. All design activities focus on how the new roles will deliver value to customers. 3.1.5.3 Phase 3: Develop Initiatives Phase 3 is where all of the plans are developed for implementation. The guide does not cover how to develop these initiatives, but does give a brief description of the following plans. ● Process training plan ● Change management plan ● Project plan ● Technology change plan ● Benefits realization plan 3.1.5.4 Phase 4: Implement Changes During phase 4 the organization implements all of the plans from phase 3, coordinated and managed by the program sponsor and project manager. This phase requires a structured project implementation schedule for each task and activity by phase with dependencies, predecessors, and so on. The technology Go-Live is part of this phase, along with technology and process stabilization. Since the BPM CBOK Guide is not prescriptive, it does not cover how-to topics like implementation. 3.1.5.5 Phase 5: Measure Success Phase 5 includes realization of benefits, which are measured against projected benefits from the original plan. It also implements the permanent Enterprise Process Management and governance model for the organization. It includes continuous measuring and monitoring of business processes and of technology. All business process, change management, benefits realization, and technology plans are stored in the process and document repositories. An ongoing continuous improvement plan is implemented with the Process Owner taking over once the overall initiative reaches project closure. Alignment of Knowledge Areas to BPM Life Cycle Phases Phase 1: New section that focuses on aligning Process to Strategy and Goals Phase 2: Process Modeling, Process Analysis, Process Design, Process Performance Measurement, Business Process Transformation, Technology and Transformation Phase 3: Process Transformation, Process Organization Phase 4: This is new section based on BPM Life Cycle and covers Organizational Design, Job training, Technology go-live and stabilization
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Phase 5: Enterprise Process Management
Continuous process improvement is an approach in which BPM practitioners continuously evaluate the performance of the business processes, and if the results fall below expectations, start the BPM life cycle again. 3.1.6 Types of Processes There are three different types of end-to-end business processes: ● Primary processes (often referred to as core processes) ● Support processes ● Management processes In most businesses, primary processes make up twenty percent of business activities, while support processes make up seventy percent, and management processes represent ten percent. 3.1.6.1 Primary Processes (20%) Primary processes are end-to-end, cross-functional processes that directly deliver value to customers. Primary processes are often referred to as core processes, as they represent the essential activities an organization performs to fulfill its mission. These processes make up a value chain, where each step adds value to the preceding step as measured by its contribution to the creation or delivery of a product or service, ultimately delivering value to customers. Value chains are comprised of what Michael Porter described as “primary” activities and “supporting” activities in Competitive Advantage (1985). The enterprise-wide business process value chain is a way of looking at the chain of activities (processes) that provides value to the customer. Each activity has its own performance objectives linked to its parent business process. Primary processes can move across functional organizations, across departments, or even between enterprises and provide a complete endto-end view of value creation. Primary activities are those involved in the physical creation of the product or service, marketing and transfer to the buyer, and after-sale support. Primary activities are referred to as value-adding. 3.1.6.2 Support Processes (70%) Support processes are designed to support primary processes, often by managing resources and/or infrastructure required by primary processes. The primary difference between support and primary processes is that support processes do not directly deliver value to customers, while primary processes do. Common examples of support processes include information technology management, facilities or capacity management, and human resource management. Each of these support processes may involve a resource life cycle and are often tightly associated with functional areas. However, support processes can and often do cross-functional boundaries. For example, capacity management, the process of managing capacity, does not directly deliver value to customers, but does support an organization's ability to deliver products and services. Capacity management often involves a number of crossfunctional activities, from planning to procurement, engineering and design, construction, and the
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process of putting capacity into production. Each of these activities could include cross-functional teams with representatives from finance, procurement, engineering, manufacturing, information technology, and other functional organizations. The fact that support processes do not directly deliver value to customers does not mean that they are unimportant to an organization. Support processes can be critical and strategic to organizations as they directly influence the ability of an organization to effectively execute primary processes. 3.1.6.3 Management Processes (10%) Management processes are used to measure, monitor, and control business activities. Management processes ensure that a primary or supporting process meets operational, financial, regulatory, and legal goals. Management processes do not directly add value to customers, but are necessary in order to ensure the organization operates effectively and efficiently.
3.1.7 Types of Activities Types of activities that are part of business processes include value-adding activities, handoff activities, and control activities. 3.1.7.1 Value Adding Value-adding activities are those that contribute to the process output in a positive way. For example, contacting the customer several days after servicing their car to check that they are satisfied adds value to the Service Vehicle process, both by measuring customer satisfaction and by enhancing the company image as a caring and concerned service provider. 3.1.7.2 Handoff Handoff activities pass control of the process to another department or organization. Transferring a customer to another department after determining the appropriate group to resolve their issue is an example of a handoff activity. 3.1.7.3 Controls and Control Activities Control activities assure that the processes behave within desired tolerances. Controls help ensure processes achieve desired goals and adhere to standards, legal, and/or regulatory requirements. Controls identify exceptions and can trigger exception processes. They can even identify dangerous conditions so they can be addressed through intervention. A control activity is a specific validity checkpoint in a process. Control activities can prevent, detect, or correct undesirable conditions or change the flow of a process to ensure that process goals are met. Control activities typically involve the application of rules and measures of conditions that will call for automated or manual intervention. The design and application of control activities has been applied extensively to finance, accounting, manufacturing, operations, and virtually all important aspects of an enterprise. A key element of process management is the identification and definition of computing financial and operational controls.
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Achieving successful adherence to these controls requires the design, testing, implementation, and monitoring of control activities. Understanding the need for controls, and those activities within the process that support and enforce controls, is an important contribution of the logic and methods of process management. Quite often, management and auditors design controls to address legal and regulatory requirements without a complete understanding of the end-to-end processes being controlled. Without a process management framework, the list of potential controls designed for risk reduction can be excessive and very difficult, if not impossible, to manage.
3.1.8 BPM Is a Management Discipline Business Process Management, as a management discipline, carries within it the concept of governance. Generically defined, governance is a structured approach to decision making and the means by which decisions are implemented (or not implemented). When applied to business processes, governance implies: ● Structured decision making regarding how an organization functions with respect to the delivery of value to customers ● A structured approach to implementing changes in the way an organization functions with respect to the delivery of value to customers The cross-functional nature of managing business processes creates a completely new need for specialized roles to support enterprise governance. In traditional, functionally-managed organizations, strategic intent is pushed into business functions at a business unit level, and structured decision making is constrained within that organizational silo (see Figure 3.3). As a result, inefficiencies, poor performance, and breakdowns most often occur during the handoffs between functional organizations. Gaps then become apparent because functional managers are measured and evaluated for their performance in optimizing their siloed functions, rather than the performance of the cross-functional processes. A void in responsibility for optimizing the handoffs between functions becomes problematic.
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Figure 3.3 Silos in Functionally-Managed Organizations
A Business Process Management implementation typically introduces new roles into the organization with responsibilities for managing processes end-to-end across functional boundaries as a remedy to address the issue of process inefficiencies, breakdowns, and communication gaps between functions. This is prescriptive in BPM and is critical in understanding the labels attached to process-centric roles and the role responsibilities associated with the processes. These new roles and responsibilities exist because of the business process orientation instead of functional resource management. It is common that a single individual representing a single position in the organizational functional hierarchy will have multiple roles: one for their business function and another in the management of the cross-functional business processes. While the role titles may vary between companies, for this discussion we will look at roles and responsibilities of the: ● Process Owner ● Process Leader ● Process Steward ● Process Analyst ● Process Governor 3.1.8.1 Process Owner The Process Owner is a centerpiece role in a Business Process Management implementation and is assigned overall responsibility for the end-to-end management of one or more business processes. Specifically, this means that the Process Owner is responsible for ensuring the process meets established performance expectations (for both effectiveness and efficiency). For example, in Figure 3.4, a performance target cycle time of 100 days has been set for a specific business process. The Process
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Owner is responsible for ensuring that the process is designed, deployed, monitored, and controlled in a manner that meets this target for every process instance.
Figure 3.4 Process Owner Assigned a Process with 100 Day Target Cycle Time In order to meet these responsibilities, a Process Owner typically: ● Engages a team of stakeholders to define business process context and ensure alignment with strategic objectives ● Engages a team of stakeholders and SMEs to ensure business process design meets expectations within its defined organizational context ● Serves as point of contact for process-related questions ● Ensures understanding of how people and systems are engaged to support process execution ● Plays active stakeholder role in business and technology initiatives that impact the process ● Facilitates business process adoption ● Monitors and reports process performance data ● Proposes a corrective course of action if process performance is not as expected ● Escalates instances of significant process performance breaches requiring attention ● Leads a team to assess, prioritize, and implement requests for process change ● Collaborates with other Process Owners to ensure alignment With respect to organizational positioning of the Process Owner role, there are fundamentally two approaches to implementation, functionally-aligned and non-functionally aligned process ownership. Functionally-Aligned Process Ownership In the functionally-aligned implementation approach, Process Owners report to heads of functional organizations. In cases where a business process transcends organizational boundaries (most do), there are two options for the responsibilities (and accountability) of process ownership:
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A single Process Owner is assigned even though some process participants report to other functional organizations Multiple Process Owners are assigned the responsibility for process ownership
Figure 3.5 Organizational Structure in Functionally-Aligned Process Ownership The pros of adopting a functionally-aligned process ownership approach are that it is less threatening to the existing power structure and more familiar to operations staff. Therefore, functionally-aligned process ownership has much less chance of being summarily rejected at introduction by the organization. For these reasons, many organizations choose to accept, in the short term, that this approach is less effective and view functionally-aligned process ownership as a baby step to the more effective (but harder to implement) approach of non-functionally aligned process ownership. Non-Functionally Aligned Process Ownership In the non-functionally aligned implementation approach, Process Owners report directly to the head of the organization (or to an organizational structure directly under the head). In this case, Process Owners are peers to the heads of functional organizations in the organizational hierarchy.
Figure 3.6 Organizational Structure in Functionally-Aligned Process Ownership
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The pros of this approach are that the Process Owner is in an appropriate position in the organizational hierarchy to address cross-functional handoff issues and that there is a clear distinction between the responsibilities of a Process Owner and those of functional management. The challenge of this approach is that it significantly changes the traditional power structure within an organization. There is a high potential for initial resistance (typically from functional managers), sometimes requiring extreme intervention from executive leadership to get the governance model off the ground. There are inherent weaknesses in both models. In functionally-aligned ownership, there is a danger that process participants from other functional organizations may not recognize Process Owner authority and scope of management, and similarly that Process Owners are less likely to take responsibility for issues stemming from other functions. The weakness in the second model is that Process Ownership is shared across functions. This is really no different than traditional functional management structures and introduces the same host of problems, specifically a lack of authority with respect to management of the handoffs between functions. 3.1.8.2 Process Leader The role of the Process Leader is played by members of the organization’s executive leadership team and may or may not involve representatives of the process ownership function. In organizations where a Business Process Management discipline exists, the typical responsibilities of the Executive Leadership Team members remain intact. For example, leaders still establish strategic direction and develop the organization's vision, mission, and core values.
Figure 3.7 Organization Chart Showing Process Leader Additional responsibilities associated with the role of Process Leader might include: ● ●
Defining the vision and strategy for Business Process Management and sponsoring its implementation Ensuring that process performance objectives are established in alignment with strategic direction
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Confirming that process change recommendations and prioritizations are in alignment with strategic intent
3.1.8.3 Process Steward The role of Process Steward is played by members of the organization’s functional management — that is, the managers of operations staff who execute activities within an end-to-end business process.
Figure 3.8 Organization Chart Showing Process Steward In organizations where a Business Process Management discipline is implemented, typical responsibilities of the Functional Management Team members include: ● ● ● ●
Developing knowledge and expertise within the functional discipline Attracting and retaining top talent within the functional discipline Structuring and developing functional team role descriptions and responsibilities Defining and maintaining operational-level procedures
These traditional Functional Manager responsibilities remain intact within organizations where a Business Process Management discipline is implemented. Additional responsibilities associated with the role of Process Steward might include: ● ●
Ensuring that operational-level procedures align with requirements of overarching business processes that the function supports. Ensuring that operations staff are aware of expectations with respect to supporting overarching business processes. For example, performance expectations, expected quality of the output(s) produced by the function, escalation paths, and circumstances under which escalation is desired.
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Gathering and submitting feedback and suggestions for process improvement to the Process Owner. Membership on the team (led by Process Owner) that assesses and prioritizes process change requests. Sharing information with the Process Owner regarding functional-level performance that is relevant to the overarching business process.
3.1.8.4 Process Analyst In small Business Process Management implementations, the Process Analyst can have responsibilities across all phases of the Business Process life cycle. In larger implementations, Process Analysts might specialize in one or two key aspects of the discipline.
Figure 3.9 Organization Chart Showing Process Analyst A sampling of typical responsibilities includes: ● ● ● ● ● ●
End-to-end design of the organization’s business processes (under direction of the Process Owner and with input from functional SMEs) Maintenance of the process model repository Collaboration with the Process Owner and Stewards to diagnose problems and propose solutions Performing analyses as requested by the Process Owner and/or Process Stewards (for example performance analysis, impact analysis, and process simulation) Typically, membership on the team that assesses and prioritizes requests for process change Typically, membership on process change implementation teams
3.1.8.5 Process Governor The role of the Process Governor is critical in driving process maturation through standardization in the practice and use of BPM methodologies and tools. This role is less focused on the content of the organization’s processes than on how that content is documented and managed. The role of Process Governor can be played by the same person who is the Process Owner in small BPM implementations and when the Process Owner is functionally neutral. However, in implementations
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